LIFE INSURANCE AFTER A DIVORCE
While it is most likely you are happy that the terms of your divorce settlement have been finalized, there is one thing that you should ensure to include in the agreement and that is a sufficient life insurance policy. Make sure that that the spouse who is responsible for providing support, obtains a life insurance policy to cover the full extent of these expenses in the event there is a death.
Once you have agreed on the monthly support obligation, you can calculate the total amount of support that will receive as a result of the divorce. There will be an estimation regarding pro rata add ons, but the rest is a definite amount and easily calculated. Once you have that total number, obtain a life insurance policy to ensure that the total payments are guaranteed through the period of support. The policy should list the spouse receiving support and/or the custodial parent as the beneficiary.
As the years progress, the amount of life insurance can decrease because the support obligation will also decrease. This will also lower the premium payments. Typically, proof of said insurance policy is normally required within thirty (30) to (60) days after the execution of the stipulation and should be reviewed once or twice a year. By obtaining this policy, both parties are ensured that support payments, especially for the children, are maintained in the event of unforeseen circumstances.